Many businesses use vehicles for their day-to-day operations. You own a fleet if your company has more than one vehicle. It is that simple. Now, depending on your business operations, you will need a systematic approach to selecting suitable vehicles based on a couple of parameters we will introduce in this article.
The purchase of vehicles is usually a heavy strain on a company’s finances, but it’s necessary if the business is to thrive. This is why it’s essential to get it right because whatever final decision is made, the company will have to live with it for years.
We’ll break down the parameters to seek when developing a vehicle acquisition process for your company, and they include the following:
· Driver friendliness
· Matching the equipment to the job
1. Productivity – Depending on the type of operation, productivity could mean maximizing payload, fuel efficiency, branding, safety, convenience, and comfort.
2. Lifecycle: As stated previously, vehicle purchases represent significant investments. Maximizing the return on vehicle investment needs to be a top priority. One way for companies to ensure a decent return on this investment is to extend the equipment’s productive life. Businesses and institutions can accomplish this by establishing a proactive and aggressive preventive maintenance program.
3. Driver friendliness – Driver turnover is a significant challenge facing our industries, as finding good hires is challenging. Therefore, purchasing equipment that is driver-friendly has become vital. Fortunately, with advancements and improvements in vehicle ergonomics, more options are available than ever.
4. Matching the equipment to the job – Buying too much equipment means spending more money than is necessary to do the job. Buy too little, and the vehicle will not be able to perform as the Fleet Managers intended. Buying too little can also lead to overworking, which inevitably will prematurely wear and tear the vehicle and its components, increasing maintenance costs.
5. Cost – Purchase, operational, and maintenance costs must be considered. New vehicles may be expensive to purchase, but they may be able to show a better Return on Investment (ROI) based on lower operational and maintenance costs. This is because newer equipment tends to be more efficient and less prone to expensive maintenance or overhauls. Additionally, the manufacturer’s warranty coverage may be able to cover some of the carrier’s maintenance costs.
Do you have a robust fleet management system? It’s okay if you don’t have one yet. Learn more about how we can help improve your fleet operations, save lives, and reduce costs. Please send us an email or call us.
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